What Does Elon Musk Think Of Tesla's Share Price Now?

On August 22, 2013 CNBC's Phil Lebeau interviewed Elon Musk inside a Tesla plant regarding its current share price. On that day, the issue added nearly $10 to end the session at $157.10. If one had heeded the advice of Mr. Musk, they would have missed out on rip-roaring rally. By February 2014, the issue had an all time high at $265 and after a dip under $200, it made its eventual all time high in September 2014 at $291.42. During his interview, Musk used very cautious terms when discussing the share price of one of the momentum issues of that time period. Musk stated "value of Tesla is very generous", "given a lot of credit for future execution", "far too high based on current and historical financials". His reaction to its huge daily gains expressed a sense of calm noting that issues goes through periods of "exuberance and depression". Now that the exuberance period came to a sxreeching halt, the depression mode in its share price is taking place. It is only Tesla Motors that is being taken down, but the recent mood of investors is too liquidate issues trading at extremely high multiples. Look no farther than the components of the FANG acronym (Facebook, Amazon, Netflix and Google) to witness the recent carnage after good or bad Q4 reports. Perhaps a better example is LinkedIn

shares that was nearly cut in half last week, that does even have a quantifiable price to earnings ratio. Tesla Motors falls into that category as well. Now with Tesla Motors back at the same level when Musk was interviewed in 2013, what may determine whether the depression will continue or exuberance phase be revived? How about its Q4 report after the close on Wednesday. After a series of EPS and revenue beats from Q1 2013 through Q3 2014, the last four quarters have been a mixed bag with a huge EPS miss for Q4 2014, a solid beat in Q1 and Q2 2015 and substantial Q3 miss this year. It should be noted revenue had increased in three of the last four quarters. More importantly. whether it was a beat or miss over this time period, not one report has yielded a profitable quarter. What will be more important than the top and bottom-line numbers for Tesla, will be its forward guidance. If the company's musters a beat. it must be accompanied to raised forward guidance. Lower or inline guidance may result in a similar thrashing that we witnessed in LinkedIn last week, One has to give credit to Musk for the evaluation of its share price in August 2013. Although an investor would have a missed $140 increase in share price, if they had not exited, they would be underwater. And in Musk's opinion it was overvalued at $150 level. One has wonder whether Musk still feels the company is overvalued. The Street will surely weigh in with opinion seconds after its Q4 report is released. In today's session, Tesla

shares have rebounded from its 25 month low made earlier in the session ($141.05) to the $150 area, $7 lower that Musk questioned its valuation in August 2103.